Krungsri says tourism stocks face short-term negative sentiment, watch ERW and AWC for long-holiday boost

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Krungsri Securities said the Ministry of Tourism reported foreign tourist arrivals from January 1 to September 12 at 21.72 million, with the latest week of September 6 to 12 seeing about 439,000 arrivals, down 7% from the previous week and down 22.2% from a year earlier. The research team assesses this as pressuring short-term sentiment toward service-sector-linked stocks, but if shares are volatile, it recommends waiting to accumulate tourism stocks, expecting that from late September a series of long holidays abroad will arrive, including Malaysia Day in Malaysia on September 16, Japan's Silver Week holidays from September 19 to 23, South Korea's Chuseok holidays from September 24 to 26, and China's Golden Week from October 1 to 7. The research team expects tourist numbers to start picking up from late September, and the Thai Tiew Thai Plus measure, which takes effect around October to November, will be the next driver, with a focus on ERW and AWC, which have high Chinese and domestic customer bases, while for the aviation group it focuses on AOT, THAI and BA.

Impact on assets 5

Industrials▲
Airports Of Thailand PCL
AOT
± MixedDemandrelevance

Named as a focus of the aviation group, with tourist arrivals weak now but expected to pick up from late September holidays.

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Aerospace & Aviation▲